Select one of the following questions to answer: If I invest $1000 at 3% interest, how long will take for my money to double? If I invest $1000 at 6% interest, how long will take for my money to double? If I invest $1000 at 8% interest, how long will take for my money to double? If I invest $1000 at 12% interest, how long will take for my money to double?
Select one of the following questions to answer: If I invest $1000 at 3% interest, how long will take for my money to double? If I invest $1000 at 6% interest, how long will take for my money to double? If I invest $1000 at 8% interest, how long will take for my money to double? If I invest $1000 at 12% interest, how long will take for my money to double?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question
A simple formula can help you estimate the number of years required to double your money. It's called the Rule of 72. You simply divide 72 by the interest rate (without the percent sign). For example, with an interest rate of 4%, your money will double in 72/4, or 18 years.
For your initial post
1. Select one of the following questions to answer:
- If I invest $1000 at 3% interest, how long will take for my money to double?
- If I invest $1000 at 6% interest, how long will take for my money to double?
- If I invest $1000 at 8% interest, how long will take for my money to double?
- If I invest $1000 at 12% interest, how long will take for my money to double?
2. Select one of the following questions to answer:
- If $120 doubles in approximately 13 years, what is the interest rate?
- If $120 doubles in approximately 19 years, what is the interest rate?
- If $120 doubles in approximately 23 years, what is the interest rate?
Answer the two questions in the instructions. You must include calculations to support your answer. Your answer must to each question must include at least one sentence in addition to the calculations.
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